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60% of renters struggling financially and 11% using food banks

renters tenants cost of living

New research among tenants reveals a bleak picture as the cost-of-living crisis hits home within the private rented sector.

Some 11% of those polled by deposit alternative firm Zero Deposit said they were turning to food banks regularly while nearly 60% are struggling financially, 12% were borrowing money to pay their rent and just 9% were ‘financially comfortable’.

Most renters blamed the cost of living for their money worries with rising rents and utility bills the most difficult to pay followed by bank overdraft and loan fees.

Also, 59% of the 1,000 renters polled said they had seen their rent rise this year.

Sam Reynolds, CEO of Zero Deposit says: “While much has been made about the obstacle of accumulating a mortgage deposit and the increased cost of monthly mortgage repayments following a spike in interest rates, the nation’s renters are facing a far more desperate situation in the current climate.

“Rent as a proportion of total salary are as high as 53% in the capital and 43% across the UK.

“This is clearly unsustainable. The Government risks sleepwalking through these issues with no meaningful progress on home building and incentives for landlords to engage in the sector with optimism.”

The deposit firm’s poll follows research from the Government two months ago that revealed half of renters are unable to save any money, 13% had experienced running out of food and 40% tenants said they struggled to pay the rent.

The ONS data also reveals that while 34% of mortgage holders have seen their monthly payments rise, this rises to 55% among renters largely due to landlords themselves facing higher mortgage costs which are passed on to their tenants, a situation made worse by the removal of tax relief on interest by the Government.

This used to cushion landlords from big interest rate rises but no longer – and tenants are feeling the results, the data highlights.


Cost of living crisis